Annual Report 2010 - Baltika Breweries

Taxes
Corporate Social Responsibility
the Company has been a partner
of the St. Petersburg International
Economic Forum.
In 2010, Baltika participated
in 60 celebratory events across
Russia and hosted some
of them. Within one year, more
than 1.5 million Russian citizens
visited events hosted or supported
by the Company and paid tribute
to a large selection of beers and
non-alcoholic beverages offered by
the Company, listened to various
musical styles and participated
in contests, competitions and
campaigns aimed at promoting
responsible beer consumption. The
hosts emphasized banning the sale
of beer to minors under 18.
Last year, Baltika participated
in kvass and beer festivals in ten
Russian cities: St. Petersburg,
Moscow, Yaroslavl, Tula, Sochi,
Rostov-on-Don, Samara,
Novosibirsk, Krasnoyarsk and
Khabarovsk. Large-scale musical
events were held under the auspices
of the Company’s popular brands:
the Ilmen Festival of Art Songs,
GreenFest, Transmusicales,
the Stereoleto session and the
Movida Corona concerts.
Baltika is one of the largest taxpayers
generating a significant portion of tax
revenues in cities where the Company’s
headquarters and branches are located. The
timely and full payment of taxes to budgets
across all levels is customary for a socially
responsible company that strictly complies
with Russian laws. In 2010, the Company’s tax
payments to budgets at all levels and extrabudgetary
funds totaled RUB 50.6 billion.
For many years now, Baltika has been the
company that generates the largest tax
revenues for St. Petersburg’s budget.
Promotion of Popular Traditions
During the summer, the Khlebny Krai kvass brand
held entertainment and awareness campaigns, “Kvass
Parties,” in ten Russian cities. Approximately four
thousand people — mostly children and teenagers —
participated in these campaigns. The campaigns were
aimed at making young Russians aware of popular
Russian traditions. The hosts invited experts
in old popular crafts and held contests for the best
knowledge of popular traditions, proverbs and sayings.
In Samara, children learned to make pottery, birch
bark platting, embroidery and crochet work. In Rostovon-Don,
they painted clay and wood work, learned
the basics of popular singing and played popular
instruments. In Kazan, children learned to weave
beads, cut wood, weave and make leather mosaics.
They also learned a lot about the history of kvass and
its role in Russia’s national culture. These campaigns
are aimed at developing a healthy society and
preserving spiritual heritage, as well as spurring the
interest of young Russians in Russian history and
promoting patriotism.
Business Ethics
The Company follows generally accepted norms
and best practice business ethics. The Company’s
business ethics policy establishes corporate principles
for running the business as a responsible partner
and is an instrument to protect its reputation. The
policy includes a set of key provisions, in particular,
the Conflict of Interests provision under which the
Company only pursues business interests when
selecting new partners and concluding agreements
and avoids any conflicts of interests with existing
business connections and the personal interests
of its employees; the Provision on Complying
with Competition Laws under which the Company
makes efforts to prevent unfair competition
in business practice and partner relationships; the
Fraud Prevention Provision and the Provision on
Inadmissible Corrupt Practices.
47